White House back to peddling economic stimulus-via-infrastructure spending and new taxes

posted at 1:21 pm on April 30, 2014 by Erika Johnsen

As President Obama so peevishly informed us all earlier this month, that the debate on repealing/replacing ObamaCare is now absolutely beyond contestation, so it would be really great if we could all just shut up and move on to more important things — like, say, the economy, because “the fifty or so votes Republicans have taken to repeal this law could have been fifty votes to create jobs by investing in things like infrastructure, more innovation.” That’s why the White House is leading by example and contrasting itself with Congress’s deliberately light legislative schedule — by proposing the same old sort of high-spending bull-pucky we’ve heard before. Via Bloomberg:

The Obama administration sent to Congress legislation that would provide $302 billion for road and transit projects over four years, a measure needed to keep the U.S. Highway Trust Fund from running dry.

The Transportation Department proposal would boost the highway fund $87 billion above current levels to generate more money for deficient bridges and aging transit systems. The bill also addresses the General Motors Co. (GM) ignition-switch recall by raising almost 10-fold to $300 million the maximum fine on carmakers that fail to quickly recall deficient vehicles.

Congressional transportation leaders in both parties have said they want to pursue six-year measures, though there is little consensus on how to finance the proposals. The Transportation Department has said the Highway Trust Fund — which relies on gasoline and diesel-fuel taxes — may not be able to meet its obligations as soon as this year. That risks leading states to slow or halt work in a recovering economy.

The funding proposal is in line with President Barack Obama’s February budget request. House and Senate panels are drafting their own bills and there are no plans in Congress to consider the president’s proposed way to help pay for it: a temporary tax increase on overseas earnings by companies.

Drivers on the nation’s Interstates could soon be paying more to travel.

A transportation proposal sent to Congress by the Obama administration on Tuesday would remove a prohibition on tolls for existing Interstate highways, clearing the way for states to raise revenue on roads that drivers currently use at no cost. Congress banned tolls on Interstates in 1956 when it created the national highway system under President Dwight D. Eisenhower.

The administration said lifting the toll ban would help address a shortfall in funding to pay for highway repairs. The tolls, along with other changes, could provide an additional $87 billion for aging roadways, tunnels and bridges, the administration said.

If we need to keep the U.S. Highway Trust Fund from running out, then fine — but why is it that the only creativity that White House ever seems to come up with has to do with ways they can add to America’s tax burden, remove more money from the private sector, and repurpose it for top-down spending? If they really want to create jobs and free up some money for infrastructure projects, why not find way to reform inefficient government programs and cut the federal budget along with taxes and actually allow people to keep more of their money, perhaps?

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

So easy to bring up the “definition of insanity” Einstein quote, but it’s repeated so often about this regime that the quotation repetition itself is starting to sound slightly mad. We have truly gone Through the Looking Glass.

A transportation proposal sent to Congress by the Obama administration on Tuesday would remove a prohibition on tolls for existing Interstate highways, clearing the way for states to raise revenue on roads that drivers currently use at no cost.

I had no idea that roads were built in the wee hours of night by magical faeries (ht: British) at no cost. You would think we could instead provide jobs by having actual humans build the roads and pay for it all with various taxes.

If they really want to create jobs and free up some money for infrastructure projects, why not find way to reform inefficient government programs and cut the federal budget along with taxes and actually allow people to keep more of their money, perhaps?

Have you lost your mind???…Everybody knows bigger government is the answer…sheeshhh…

You know what is a shovel ready job, would spur economic growth, and would cost the feds nothing?

Keystone XL.

So a real economic positive project is delayed until after the midterms or outright canceled. Obama is not serious about anything other than growing government and taking freedom away. Well and diminishing the status of the USA in the world. On those goals Obama is firing on all cylinders.

If they really want to create jobs and free up some money for infrastructure projects, why not find way to reform inefficient government programs and cut the federal budget along with taxes and actually allow people to keep more of their money, perhaps?

Even though the overall net impact on natives is small, this does not mean that the wage losses suffered by some natives or the income gains accruing to other natives are not substantial. Some groups of workers face a great deal of competition from immigrants. These workers are primarily, but by no means exclusively, at the bottom end of the skill distribution, doing low-wage jobs that require modest levels of education. Such workers make up a significant share of the nation’s working poor. The biggest winners from immigration are owners of businesses that employ a lot of immigrant labor and other users of immigrant labor. The other big winners are the immigrants themselves.

Just NO. When is it EVER going to be enough? I’m single, I rent, and I have no kids and I work full time. I’m getting killed in taxes! But sure, lets make more “stimulus”!
Seriously, why do we not have a basic economics test that politicians MUST pass before taking office?
F you Obama. I’ll be dancing in the streets the day your a$$ leaves office you piece of @!##%^%&(*&.

House and Senate panels are drafting their own bills and there are no plans in Congress to consider the president’s proposed way to help pay for it: a temporary tax increase on overseas earnings by companies. (bold added by Erika, italics added by me)

If we need to keep the U.S. Highway Trust Fund from running out, then fine — but why is it that the only creativity that White House ever seems to come up with has to do with ways they can add to America’s tax burden, remove more money from the private sector, and repurpose it for top-down spending?

Because that’s how state-managed capitalism works.

If they really want to create jobs and free up some money for infrastructure projects, why not find way to reform inefficient government programs and cut the federal budget along with taxes and actually allow people to keep more of their money, perhaps?

Because in their eyes, it’s their money, not public funds!

I wish Repubs had the spines to let them tackle the latter objective, though. Lots of opportunities there.

I’m not absolutely certain, but I think the prohibition is on the federal government from charging tolls, not individual states such as Ohio, PA, and New York.

Bitter Clinger on April 30, 2014 at 1:51 PM

The Ohio and Pennsylvania Turnpikes (and the other “legacy” Interstate toll roads) were grandfathered when the Interstate system was created. The otherwise-total ban lasted until the 1980s, when newly-built or newly-designated Interstates could be toll roads, with a continued ban on converting toll-free Interstates into toll roads. In 2005, new lanes on existiong toll-free Interstates could be tolled.

Hey, it worked so well the first few times he did this, can you blame him for wanting to do it again? Bark’s just trying to build on his past successes.

NOMOBO on April 30, 2014 at 1:38 PM

Yes, what’s the name of that mental disorder that is characterized by the patient doing the same thing over and over and over and over again, watching it fail each time, but continuing to do the same thing again in the delusional belief that this time, somehow, it will work?

The same young urban demographic that pollsters tell us has become disillusioned with politics (and, coincidentally, I’m sure, Obama) has shelled out over $800 million to see the first two “Hunger Games” in theaters. “Catching Fire” is about as anti-establishment r3volutionary as they make them. As Breitbart used to tell us, politics is downstream from culture (or say, popular culture).

Yes, what’s the name of that mental disorder that is characterized by the patient doing the same thing over and over and over and over again, watching it fail each time, but continuing to do the same thing again in the delusional belief that this time, somehow, it will work?

Oh yes, I think the psychiatrists call it insanity.

AZCoyote on April 30, 2014 at 2:21 PM

No no no – it’s called practice.
THIS time it will work.

I myself have been working on flying. I’ve been told by the experts that all you have to do is throw yourself at the ground – and miss.
Apparently my aim is just too good – but eventually I’ll get it right.

No, I think Vlad Putin took it away from Barry. He was afraid Barry might hurt himself with it, and Vlad wasn’t willing to take a chance on losing an American president as wonderfully “flexible” as Barry has proven to be.

If the proposal would allow STATES to impose tolls on Interstate highways, it would be up to State legislatures and Governors, not the Federal Government, whether or not to impose tolls, where to impose them, and what the money should be spent on, within the same state. With the Federal gasoline tax, the money is often spent on roads far from where a given taxpayer actually drives.

Of course, a toll on any road discourages drivers from using that road, and encourages them to use parallel toll-free roads, unless they are too congested. This leads to more traffic congestion (and more road wear) on the free roads, meaning that there is less time (nights and weekends) with light traffic when the free roads can be repaired.

By the way, if revenues from the Federal gasoline tax are declining, that means less gasoline use and less pollutant emissions from cars. Isn’t that a GOOD thing?

During the years from 2000 to 2008 the federal government
took in between 2 and 2.4 trillion dollars to run the government.

Obama’s thug regime has increased taxes all over the place and
has taken in more than 3 trillion I believe. Now taxes are going
to rise even more with payroll tax and other increases. And we
are still printing money!

What in God’s name are they doing with the money?

Is there a full accounting? (laugh)

Also, is there a federal tax included in the payments to Obama Care
that are separate from medical expenses? Just curious.

Many conservative blogs criticized Paul Ryan’s budget proposal.
Now, I read in an email from Citizens Against Government Waste”
this:

Ryan Budget Takes Step toward Fiscal Climate Change

The Council for Citizens Against Government Waste (CCAGW) this month praised House Budget Committee Chairman Paul Ryan’s (R-Wis.) Fiscal Year 2015 Budget Resolution, approved on April 10 by a vote of 219–205. Chairman Ryan’s plan would cut spending by $5.1 trillion over the next 10 years, pay down the national debt, gin up investment and productivity, and enhance government transparency and accountability. The House budget blueprint features numerous program cuts, consolidations, terminations, and reforms that CAGW has recommended in Prime Cuts and its other publications for years, such as a reduction in the federal auto fleet and the elimination of underutilized and vacant federal property. The House budget would also lower individual tax rates to promote economic growth and create jobs, as well as repeal Obamacare. CCAGW President Tom Schatz remarked, “The Chairman’s budget would begin to finally tackle Washington’s spending addiction. … This is not a climate for political gamesmanship and gimmicks; taxpayers want a fiscal sea change. The time to end profligate spending in Washington is now.”

I don’t want Paul Ryan as president, however, am wondering why
conservative blogs are so against this. Any ideas?

Most people are against these types of budget deals because the “savings” happen in outlying years and said outlying years never happen. It’s like border security, they appropriate funds and then get rid of those funds immediately and we never hear about it. I don’t doubt Rep. Ryan’s sincerity but there are plenty on both sides that will make sure his goals never happen, or rather make sure their goals happen at the expense of his.

Illinois tripled their tolls several years back. Roads still suck. Money spent elsewhere. State still basically bankrupt.

WryTrvllr on April 30, 2014 at 2:41 PM

Same goes for gasoline taxes in most states. Rakes in revenue supposed to be spent on maintaining and construction of highways, but the pols always have “better” and more “immediate” use for the funds, so borrow much from it and promise, some day, to pay back for all those roads and bridges that can wait, oh, maybe 20 years or so, for repairs, replacement and addition. I mean you can still travel over them…..they haven’t fallen apart yet,have they, and really, whats another measly one or two additional hours added on to one’s commuting in overcrowded urban highways and freeways.

Do you have Windows 8? I do. I takes things I write and rearranges them while I’m writing. I end up with the name of whomever I writing to and the date, mixed in with my post. In fact, it just did it now as I was posting. *crazy*

Does the same thing with my links at the top.

It drives me crazy at times. I lose links and make stupid posts that I can usually catch